This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

In China, IPO Road Shows Are Now 'As Tasteless as Chicken Ribs'

BEIJING (TheStreet) -- The land of phony Nike (NKE) shoes and Nokia (NOK) phones is now home to another kind of knock-off: the fake IPO road show.

The latest green tea-and-PowerPoint presentations sponsored by Chinese companies eager to list on the Shanghai and Shenzhen stock markets certainly look like the real thing, according to a report in this week's edition of the Chinese magazine Moneyweek.

But new pre-IPO financial disclosure rules in China have effectively stripped road shows of the meaty information about companies that potential investors and their brokers want to hear before buying stock.

Quoting a Mandarin idiom, the report said Chinese company road shows are now "as tasteless as chicken ribs."

The rules took effect in January to coincide with the lifting of a ban on IPOs that had been imposed by the China Securities Regulatory Commission in late 2012. Regulators temporarily barred new listings so that they could rewrite IPO rules, improve market functions and discourage speculation.

In the weeks since the IPO gates re-opened, some 45 companies have gone public on the A-share board of the Shanghai Stock Exchange, reportedly raising about 30 billion yuan. Seven others are expected to launch soon. Meanwhile, the CSRC is reportedly reviewing another 695 requests from IPO hopefuls.

Road shows in the past were often raucous affairs attended by company executives, brokers and enthusiastic investors. Attendees often received samples of a company's products and electronic gadgets as gifts.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs